Here’s What the Wall Street Thinks About ExlService Holdings (EXLS)

Core Insights - ExlService Holdings, Inc. (NASDAQ:EXLS) is recognized as one of the best mid-cap tech stocks to buy, with analysts maintaining a positive outlook despite a slight reduction in price target from $52 to $49 by J.P. Morgan [1][2] - The company reported strong fiscal Q3 2025 results, exceeding revenue and EPS estimates, with revenue growing 12% year-over-year to $530 million and EPS rising 11% to $0.48 [2][3] - Management attributes growth to a 9% increase in the Insurance segment, driven by clients transitioning to AI-powered operations, with 56% of total revenue derived from data and AI solutions [2][3] Financial Performance - Fiscal Q3 2025 results showed revenue of $530 million, surpassing estimates by $7.13 million, and EPS of $0.48, exceeding estimates by $0.01 [2] - Full-year revenue guidance was raised to a range of $2.07 billion to $2.08 billion, up from the previous range of $2.050 billion to $2.07 billion [3] Revenue Composition and Growth Drivers - Over 75% of the company's revenue is recurring, indicating a stable revenue base [3] - Continued growth is expected in the Insurance and Healthcare and Life Sciences segments, fueled by increased adoption of AI workflows [3][4] - Analyst Bryan Bergin anticipates ongoing revenue growth as clients become more comfortable with Generative AI and agentic scaling [4]